Federal Arbitration Act (FAA)

The Federal Arbitration Act (FAA) is a law that promotes and enforces agreements where parties agree to resolve their disputes through arbitration instead of court trials. It ensures arbitration agreements are honored and can be legally enforced, making arbitration a reliable alternative for resolving legal disagreements. The FAA applies to contracts involving interstate commerce and limits the ability of courts to overrule arbitration agreements, encouraging early resolution and reducing litigation costs. Overall, it supports the use of arbitration as a binding, efficient dispute resolution method recognized by federal law.